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Evaluating coasean bargaining experiments with meta-analysis

Author

Listed:
  • Tyler Prante

    (PhD. Candidate, Dept. of Economics, University of New Mexico)

  • Robert P. Berrens

    (Professor, Dept. of Economics, University of New Mexico)

  • Jennifer A. Thacher

    (Assistant Professor, Dept. of Economics, University of New Mexico)

Abstract

While the Coase Theorem has been a touchstone for understanding bargaining behavior, it has also been criticized for relying on unrealistic assumptions. In response, a line of experimental research analyzes bargaining behavior in laboratory settings. This paper uses meta-analysis to evaluate the Coasean bargaining literature by modeling the probability of an efficient bargain as a function of: (1) measures of transaction costs and related variables, and (2) measures of the social dimensions of a bargain. Results suggest that efficient solutions are more likely when explicit transaction costs do not exist, in the absence of a binding time limit, and when participants have perfect information on payoff schedules. Social dimension variables are found to have the potential to affect bargaining outcomes and are an important avenue for further research.

Suggested Citation

  • Tyler Prante & Robert P. Berrens & Jennifer A. Thacher, 2007. "Evaluating coasean bargaining experiments with meta-analysis," Economics Bulletin, AccessEcon, vol. 3(68), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07c90007
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    References listed on IDEAS

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    Cited by:

    1. Oren Bar-Gill & Christoph Engel, 2018. "How to Protect Entitlements: An Experiment," Journal of Law and Economics, University of Chicago Press, vol. 61(3), pages 525-553.
    2. Nicolas Vallois & Dorian Jullien, 2017. "Replication in experimental economics: A historical and quantitative approach focused on public good game experiments," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01651080, HAL.
    3. Tatyana Deryugina & Frances C. Moore & Richard S.J. Tol, 2020. "Applications of the Coase Theorem," Working Paper Series 0820, Department of Economics, University of Sussex Business School.
    4. Christoph Engel, 2011. "Dictator games: a meta study," Experimental Economics, Springer;Economic Science Association, vol. 14(4), pages 583-610, November.
    5. Oren Bar-Gill & Christoph Engel, 2016. "Bargaining in the Absence of Property Rights: An Experiment," Journal of Law and Economics, University of Chicago Press, vol. 59(2), pages 477-495.
    6. Nicolas Vallois & Dorian Jullien, 2017. "Replication in Experimental Economics: A Historical and Quantitative Approach Focused on Public Good Game Experiments," GREDEG Working Papers 2017-21, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    7. Friesen, Lana & MacKenzie, Ian A. & Nguyen, Mai Phuong, 2023. "Initially contestable property rights and Coase: Evidence from the lab," Journal of Environmental Economics and Management, Elsevier, vol. 120(C).
    8. Tom Lane, 2015. "Discrimination in the laboratory: a meta-analysis," Discussion Papers 2015-03, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    9. Lane, Tom, 2016. "Discrimination in the laboratory: A meta-analysis of economics experiments," European Economic Review, Elsevier, vol. 90(C), pages 375-402.

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    More about this item

    Keywords

    Coase Theorem;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • H0 - Public Economics - - General

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